2023-06-14 23:36:02
The Dow Jones New York Stock Exchange closed more than 200 points lower on Wednesday (June 14) following the Federal Reserve (Fed) held interest rates as expected. But it has signaled that it will raise interest rates two more times by the end of the year.
- The Dow Jones Industrial Average closed at 33,979.33 points, down 232.79 points or -0.68%,
- The S&P500 index closed at 4,372.59 points, up 3.58 points, or +0.08%, and
- The Nasdaq Index closed at 13,626.48, up 53.16 points, or +0.39%.
The Federal Open Market Committee (FOMC) held its short-term interest rate at 5.00-5.25% at its meeting yesterday. which is as expected by the market After the Fed has raised interest rates 10 times in a row since the Fed began its rate-raising cycle in March. 2022, causing the Fed to raise interest rates a total of 5.00%.
However, in their policy interest rate expectations (Dot Plot), Fed officials signaled two more 0.25% rate hikes to 5.6% by the end of the year.
The forecast for the US economy. The Fed raised its growth forecast to 1.0% this year, but cut its 2024 and 2025 forecasts to 1.1% and 1.8%, respectively, and raised its inflation forecast to 3.9% in 2025. and is at 2.6% and 2.2% in 2024 and 2025, respectively.
However, following the Fed Board announced the resolution of the meeting Investors weighed 63% that the Fed will raise interest rates at its next meeting on July 25-26, up from 60% previously.
Healthcare stocks tumble Led by health insurer United Health Group, shares tumbled 6.4 percent following it forecast health care costs would soar in the second quarter as more elderly people get health screenings.
Energy stocks fell in line with WTI oil prices, with Halliburton down 2%, Exxon Mobil down 1.2%, Chevron down 0.9%, Konoco Phillips down 0.72. %
Tesla stock closed 0.74 percent weaker following a 13-day streak of gains, with Tesla trading at more than $43 billion. This is higher than all stocks computed in the S&P 500 index.
However, the chipmaker’s shares rose. The Nasdaq and S&P 500 closed in positive territory, with India shares up 4.8%, broadcom shares 4.1%, Intel shares 4.9%, Micron Technology shares 1.84% higher.
Advanced Micro Devices (AMD) shares rose 2.25 percent to $127.33 following Goldman Sachs analysts raised their price target for AMD shares to $137 from $97 following the company’s announcement. MI300X”, a state-of-the-art artificial intelligence (AI) graphics processing unit (GPU) to compete with Nvidia’s AI chip.
For the latest reported US economic data. The U.S. Labor Department reported that the Producer Price Index (PPI), which measures inflation driven by producer spending, rose 1.1 percent in May from a year earlier. which is the lowest since December 2020 and below analysts’ estimates of 1.5% from 2.3% in April.
Other economic data that will be released this week include: Weekly Claims, May Retail Sales, New York Fed’s Empire State Manufacturing Index June, May Industrial Production and the June preliminary consumer confidence index from the University of Michigan.
By InfoQuest News Agency (June 15, 2023)
Tags: dowjones, Dow Jones, Stock Market, New York Stock Exchange
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